Silver Prices Reach All-Time High; Industrial Demand Remains Steady

The price of silver reached an all-time high, clocking ₹1.15 lakh per kilogram for the first time. The surge can be attributed to strong demand for industrial applications and persistent supply deficit. “Silver is getting all the spotlight, not just as a precious metal but also due to industrial demand. With growing ETF inflows — ₹854 crore in May, nearly three times that of gold ETFs — silver is drawing fresh attention,” noted Trivesh D, COO of Tradejini. As per analysts, the white metal has outperformed gold, reporting increased usage in sectors like solar panels and electronics accounting for nearly 60% of its demand.

Worldwide, spot silver prices surged by 0.6% to $38.59 an ounce. “Silver outshined most commodities last week, marking an all-time high on the domestic front and hovering near $40 on COMEX,” stated Manav Modi, Senior Analyst at Motilal Oswal Financial Services. Nirpendra Yadav of Bonanza highlighted that silver has cemented its significant position in the market, making it sensitive to macroeconomic trends. The surge can be attributed to strong industrial demand coupled with insufficient mining investments, leading to a prolonged supply shortfall.

Investors are betting big on the white metal due to the sharp rise in silver prices and the expected boost from ongoing industrial growth. “Silver has indeed outperformed gold recently, particularly in June, as industrial demand continues to strengthen,” observed Yadav.